Slide 1: Group Strategy Update
Group Strategy Update Coloplast Capital Markets Day 2016 Lars Rasmussen, President & CEO
Slide 2: Since 2012 we have delivered strong revenue growth, EBIT-margin expansion and significant cash returns
Since 2012 we have delivered strong revenue growth, EBIT- margin expansion and significant cash returns Revenue growth EBIT margin Cash return Revenue (DKKm) Reported EBIT margin (%)* Dividends (DKKm) Organic growth (%) 40,000 Share buy-back 9.1 Pay-out ratio (%)* 35,000 33.4 ~33 30,000 82 32.6 78 7
Slide 3: Coloplast has advanced from being in the middle of our peer group to leading it
Coloplast has advanced from being in the middle of our peer group to leading it 6 years ago we were lagging behind our peer group… …Today, we lead it In percent In percent Sales CAGR 2007-2010 EBIT margin 2010 Sales CAGR 2010-2015 EBIT margin 2015 WEGO 31.0 Medtronic 31.3 WEGO 25.4 Coloplast4 32.6 S
Slide 4: We have invested DKK 1bn in attractive business cases to further fuel growth
We have invested DKK 1bn in attractive business cases to further fuel growth We have invested 1bn in the business since 2012 … … in attractive investment cases Consumer by type: by geography: Other 15% China Europe Emerging 35% Markets 45% US Consumer 25% Sales force 60% UK Other Developed Markets 2
Slide 5: We have launched innovative products across business areas
We have launched innovative products across business areas … Continence Care Ostomy Care Wound Care Urology Care Page 5
Slide 6: … and we now reach out to more than 1 million consumers globally
… and we now reach out to more than 1 million consumers globally Consumer focus Page 6
Slide 7: We have delivered on our ambitious strategy with significant achievements
We have delivered on our ambitious strategy with significant achievements … Achievements • Continued strong underlying momentum in core European business • Increased momentum in Other Developed Markets • Expansion in Emerging Markets • Turnaround in Wound Care • Globalization of Urology Care
Slide 8: LEAD20
Having delivered on our strategy we will now introduce the new Coloplast Corporate Strategy LEAD20
Slide 9: Our new strategy will drive revenue and earnings growth
Our new strategy will drive revenue and earnings growth 2 1 We will lead across 4 themes to ensure that We lead and shape our industries 4 3 Page 9
Slide 10: We are continuously challenging the industry standards by taking a user focused market approach
1 Unique user focused market approach We are continuously challenging the industry standards by taking a user focused market approach Building a consumer healthcare company Shape the standard of care in the AWC industry Classical medical device company H Consumer We are making Wound Care intuitive w
Slide 11: Clear value propositions guide our R&D to continuously deliver superior products and innovation
2 Superior products and innovation Clear value propositions guide our R&D to continuously deliver superior products and innovation to our users Supported by clear value propositions to guide our R&D effort Our mission Eliminate the burden of leakage Next generation products Reducing the burden New R
Slide 12: We will continue to drive unparalleled efficiency across Global Operations and Business Support
3 Unparalleled efficiency We will continue to drive unparalleled efficiency across Global Operations and Business Support Drive efficiencies through Global Operations Plan… …and Business Support • Efficiency improvement in the subsidiaries, HQ and business support centre 1. Reduce risk of supply 2.
Slide 13: Expansion relies on our organisation and strong leadership development is key to support growth
4 Strong leadership development Expansion relies on our organisation and strong leadership development is key to support growth Our organisation will grow … … and it will be even more important to hire for a career and not a job ~3,000 Build our internal Hire externally for key leadership new positi
Slide 14: The strategy will commit up to DKK 2bn in new investments towards 2020
The strategy will commit up to DKK 2bn in new investments towards 2020 Key strategic initiatives Geographical focus areas Innovation US UK Wound care Pacific Consumer Emerging Markets Page 14
Slide 15: Two key investment areas will be the US and Wound Care
Two key investment areas will be the US and Wound Care US to deliver +10% growth Wound Care to deliver +10% growth From breakthrough … From a follower … Challenge the Shape the market leader … To challenging the market leader standard of care … To shaping the AWC industry From uncoated catheters … F
Slide 16: Our new long-term guidance will continue to deliver strong value creation
Our new long-term guidance will continue to deliver strong value creation Revenue growth EBIT margin annual organic annual improvement 7–9% 50–100 bps Page 16
Slide 17: Our mission, values and vision
Our mission Making life easier for peoplé with intimate healthcare needs Our values Closeness... to better understand. - Passion... to make a difference Respect and responsibility... to 0 guide | US: Our vision Setting the global standard for listening and responding: Coloplast A/S - Ostomy Care / C